Which statement is correct? The long-run supply curve for a purely competitive
A)decreasing-cost industry will be upward-sloping.
B)increasing-cost industry will be perfectly elastic.
C)increasing-cost industry will be upward-sloping.
D)increasing-cost industry will be less elastic than the short-run supply curve.

Question

Quizplus · Accepted Answer

In an increasing-cost industry, as output increases, input prices rise, leading to higher production costs, which results in an upward-sloping long-run supply curve.

Which Statement Is Correct? the Long-Run Supply Curve for a Purely